Peter PossemiersEVP, Environment, Health & Safety

ENVIRONMENT,

HEALTH AND

SAFETY (EHS)

7-9 November 2019

SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

3

4SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

WE ARE ALL SMOKERS

Long-term exposure

to air pollution,

especially ground-

level ozone, is like

smoking about a

pack of cigarettes

a day

One cigarette per day is equivalent of a PM2.5 level of 22 μg/m3

5SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

EHS IN SOCIETY

6SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

A COMMON PERCEPTION

“China’s economic growth has come at a high price”

“London’s turning green”

“China – the world's biggest polluter”

“Taiwan has one of the highest recycling rates in the

world”

What London achieved in 100 years - China managed in 30

7SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

CHINA – GDP/EHS/PM2.5

69.50 70.54 63.83 65.5159.77

59.06

52.21

52.66 51.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GDP

EHS Revenue

PM 2.5

2015Pollution event at

Changzhou school

leads push for Indoor

environment Quality

(IEQ) – Formaldehyde

kit leading to real time

monitoring

2016Dioxins detected

in fresh water crabs as a result of legislation

introduction in 2008

2017

13th five year plan

on environmental

protection issued

2018President Xi proposed

“7 BATTLES

AGAINST POLLUTION”including protection of

the Blue Sky

2019

Soil pollution

prevention and

control law

becomes effective

2009

Air pollution index

first published

and raises

national discussion

2012Cadmium

contamination of rice drive legislative

process

2014-2016

First regulation for

action plan of air

pollution and

control law published

2014

COLLAPSE

OF CLEAN

DEVELOPMENT

MECHANISM (CDM)

2014

Soil remediation

added to

environmental

protection law

2014Leak detection and

Repair (LDAR) for chemical sites launched

– “ONE PLAN

FOR EVERY

SINGLE SITE”

8SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

TAIWAN – GDP/EHS/PM2.5

29.128.6

25.4

24.0 23.6

22.0

20.0

18.3

14.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GDP

EHS Revenue

PM 2.5

2011Gas station prevention of groundwater pollution

and management measures

2012

Air quality

standard update

and Indoor Air

Quality enforcement

released

2013

Land

transportation,

noise control

standards

2014

Air Quality Act

comes in force,

buffer zones and

air quality monitoring

enforced

2017

Second batch of

Air Quality Act

ENFORCED

2014Chemical industry affluent standard; DRINKING

WATER QUALITY

STANDARD

REVISED

2010

Soil and

Groundwater

Pollution Act

revised and increased

2001-2009

6 major

standardsRELEASED RELATED TO SOIL, GROUNDWATER, AIR POLLUTION AND NOISE CONTROL

9SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

LEADING EHS SERVICES

IN CHINA

LABORATORY

SERVICES ■ Traditional Environmental

analysis

■ Soil and water testing

■ Solid Waste and hazardous waste identification and testing

■ Ambient air testing

■ Dioxins

AUDITING &

COMPLIANCE ■ Environmental Site Assessment■ Risk Audits

FIELD &

MONITORING ■ Leak Detection and Repair

(LDAR) and Volatile Organic

compounds (VoCs) for factories

and industrial parks■ Stack sampling

■ Marine services

HEALTH &

SAFETY■ Industrial Hygiene ■ Indoor Environmental Quality

(IEQ)

■ Safety audits, training and related services

Laboratory Auditing & Compliance

Field & Monitoring Health & Safety

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HEALTH & SAFETY

AND AUDITING & COMPLIANCE■ Industrial Hygiene and safety ■ Indoor Environmental Quality

SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

LEADING EHS SERVICES

IN TAIWAN

LABORATORY

SERVICES ■ Routine testing ■ Water testing

■ Soil, Sediment, waste ■ Ambient air, stack emission,

indoor air quality

■ VoCs■ Semi VoCs

■ High End testing

■ Furans, PCBs, Dioxins

FIELD &

MONITORING ■ Sampling: Air emission, water,

industrial waste

■ Monitoring: IEQ, Ambient air, leak detection, noise and vibration

■ Inspection: Contaminated soil (Land), Water Quality and Hydrogeological Investigation

Field & Monitoring Laboratory

Auditing & Compliance Health & Safety

11SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

CHINA & TAIWAN EVOLUTION

2006 2010 2014 2018

China Taiwan

The FUTURE IS BRIGHT

Indoor Air Quality

+ Indoor

Environment Quality – China

and Taiwan

Growth in

Industrial

Hygiene testing;

BECOME

CLASS A IN

CHINA

(NATIONAL)

MONITORING

of Industrial Parks in China

Take advantage

of the push on

WASTE INVENTORY for solid waste

identification and on site auditing in

China

AIR MONITORING

OPPORTUNITIES AS ENTERING 2ND YEAROF THE “THREE YEAR

ACTION PLAN TO WIN BATTLE

ON PROTECTION OF BLUE

SKY” IN CHINA

Large project for

establishing noise

monitoring

under sea at

major ports in

Taiwan

Develop

Health & Safety

activities

in Taiwan

12SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

OUR COMPETITION

CHINA ACCESSIBLE EHS MARKET CHF 1.4B.

Our focus is on international clients, government agencies and large

state enterprises that value total solution, data quality, technical

leadership and service at a strong margin.

CENTRE TESTING

INTERNATIONAL

(CTI)

market share estimated 12%

significant player 30 env labs,

multi region, local focus, good

growth, improving margin

GUANGZHOU GRT

METROLOGY AND TEST

(GRGT)

state owned, 8% market share

32 labs, multi region, rapid

growth, local focus, improving

margin

TAIWAN ACCESSIBLE EHS MARKET CHF 160M.

As market leader our focus is to be first to market with new accredited

products based on changing or new regulations, being the technical

expert and delivery quality results at a good margin.

SUN DREAM GROUP

17% MARKET SHARE

TSING HAU TECHNOLOGY

9% MARKET SHARE

TAWAN ASAHI

8% MARKET SHARE

CENPRO

6% MARKET SHARE

MAIN COMPETITION: MAIN COMPETITION:

13SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

DIGITAL STRATEGY

SMART SENSORS

& IOTReal-time monitoring

Smart Cities entry

LEBT sensors with MESH network

SECTORS: REAL ESTATE, RETAIL,

MANUFACTURING & HOSPITALITY

AI & MACHINE

LEARNINGAsbestos fiber recognition

Automated reporting

Digitalization of audits

ADDED VALUE: EFFICIENCY, OPTIMZATION OF EXISTING DATA TO GENERATE SALES

CLIENTS: MULTIPLE

WEB PORTAL &

CLOUD STORAGEEngage , E-Data – data management and visualization

SGS Nubia – audit access and sharing

SECTORS: MULTIPLE

E-COMMERCEB2C market access

Digitalization of customer

interaction & payments

CLIENTS: HOUSEHOLDS, HOTELS,

CONSULTANTS

AUGMENTED

VIRTUAL REALITYTraining & marketing

Virtual Inspections

Support to audit programs

ADDED VALUE: MARKETING

CLIENTS: CONSTRUCTION, REAL

ESTATE, ARCHITECTS

CROWDSOURCINGHotel guest participation – Legionella sampling by SGS crowd – Remote places sampling

BIG DATA & ANALYTICSSensor data trending, benchmarking and predictive modeling – Enhancement of audit data with publicly available datasets

ROBOTIC PROCESS AUTOMATIONField work & audit scheduling – Laboratory tasks automation

BLOCKCHAIN TECHNOLOGYProvision of legally defensible data by EHS laboratories

DIGITAL

MARKETINGChatbots

Video & 3D Immersion

Social Networks

ADDED VALUE: INCREASED VISIBILTY

SECTORS: MULTIPLE

SERVICES AVAILABLE SERVICES CURRENTLY UNDER DEVELOPMENT SERVICES UNDER CONSIDERATION

14SGS ENVIRONMENT, HEALTH AND SAFETY (EHS)

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